Illinois Mutual Fire Insurance v. Andes Insurance

Citations

• 67 Ill. 362

Syllabus

<p>1. Insurance—extent of liability for loss. In the case of an ordinary policy of insurance, and a loss, the sum insured is the extent of the insurer’s liability, but not the measure of the claim of the assured. The contract being one of indemnity, he is entitled only to that, and the actual loss sustained by the assured is the measure of indemnity to which he is entitled when it is less than the sum insured.</p> <p>2. Same—liability of reinsurer to company first insuring. Where an insurance company, after having taken a risk and reinsured in another company to indemnify itself against loss on its policy, discharges its liability by the payment of a less sum than that reinsured, the sum so paid by it will be taken as the amount of damage sustained, and the measure of indemnity to be recovered of the second company.</p> <p>3. Same —policy of reinsurance construed. And where the policy of reinsurance contained this clause: “loss, if any, payable pro rata, at the same time and in the same manner as the reinsured company,” in case of a loss the reinsurer will only be bound to pay at the same rate the re-insured shall pay; so that, if the reinsured pays only ten cents on the dollar of its insurance, the reinsurer will pay at the same rate on the amount of its policy.</p>